Rupee Gains 5 Paise To 83.44 Against US Dollar In Early Trade

Rupee Gains 5 Paise To 83.44 Against US Dollar In Early Trade

Ashiq Butt | July 8, 2024 | 01:04 PM IST | India, Mumbai | Follow on Google News

Rupee Gains 5 Paise To 83.44 Against US Dollar In Early Trade

Rupee Gains 5 Paise To 83.44 Against US Dollar In Early Trade

Mumbai : The Indian rupee appreciated by 5 paise to 83.44 against the US dollar in early trade on Monday. This appreciation was driven by a retreat in both the American currency and crude oil prices, alongside positive sentiment from foreign fund inflows.

At the interbank foreign exchange market, the rupee opened at 83.45 and strengthened to 83.44, marking a 5 paise rise from its previous close of 83.49 on Friday.

RBI’s Commitment and Economic Indicators

Amit Pabari, Managing Director of CR Forex Advisors, noted that the Reserve Bank of India (RBI) appears committed to preventing the rupee from depreciating below 83.70, even amid pressure from high oil prices.

Pabari highlighted that positive economic indicators, including robust growth rates, stable inflation, a reduced fiscal deficit, record-high RBI forex reserves, and a steady pipeline of inflows, are supporting the rupee. Given these factors, he anticipates the rupee will trade within a broad range of 83.20 to 83.70 levels.

Global Market Movements

Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, was slightly lower by 0.01 percent, trading at 104.86. Brent crude futures, the global oil benchmark, saw a minor decline of 0.03 percent to USD 86.51 per barrel.

On the domestic front, the 30-share BSE Sensex dropped by 174.57 points, or 0.22 percent, to 79,822.03 points. The broader NSE Nifty also saw a decline, falling by 13.05 points, or 0.05 percent, to 24,310.80 points.

Foreign Fund Inflows and Forex Reserves

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday, purchasing shares worth Rs 1,241.33 crore, according to exchange data. On the domestic macroeconomic front, India’s forex reserves decreased by USD 1.713 billion to USD 651.997 billion for the week ended June 28, according to the RBI.

This follows a previous drop of USD 2.922 billion, bringing the reserves from an all-time high of USD 655.817 billion on June 7 this year.

Ashiq Butt

Ashiq Butt – is VoM News's senior staffer worked since year 2015 and he deals with correspondency and social media handles. Hailing from Doda's Marmat, Ashiq has strong grip over the collection of the data and it's compiling feature.